This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ate of inflation, they play
a key role in the transmission of monetary policy from the central bank to the rest of the
economy. That is, depository institutions are the conduit through which monetary policy actions impact the rest of the financial sector and the economy in general. Monetary
policy actions include open market operations (the purchase and sale of securities in the TABLE 1–2
Liquid Assets, and
(billions of dollars,
averages of daily
18,447.9 Notes: Composition of the money stock measures and debt is as follows:
Source: Federal Reserve
Bulletin, Table A15, various
www.federalreserve.gov M1: (1) Currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions. (2) Traveler’s
checks of nonbank issuers. (3) Demand deposits at all commercial banks other than those owed to depository institutions, the
United States gov...
View Full Document
This document was uploaded on 03/09/2014 for the course ACC 301 at HELP University.
- Spring '09